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Question 8 O pts Pharmaceuticals Companies O and P manufacture and market pharmaceuticals. One firm is a diversified company that sells both human pharmaceuticals as

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Question 8 O pts Pharmaceuticals Companies O and P manufacture and market pharmaceuticals. One firm is a diversified company that sells both human pharmaceuticals as well as health products for animals. This company's strategy is to stay ahead of the competition by investing in the discovery and development of new and innovative drugs. The other company focuses on generic pharmaceuticals and medical devices. Most of this company's growth has been inorganic - the growth strategy has been to engage in highly leveraged acquisitions, and it has participated in more than 100 during the past eight years. The goal of acquiring new businesses is to enhance the value of the proven drugs in the company's portfolio rather than gamble on discoveries of new drugs for the future. Hints: Again, look at Goodwill. - R&D results from researching new drugs, instead of acquiring their creators. Diversified pharmaceutical is O, Generic pharmaceutical and medical devices is P O Diversified pharmaceutical is P, Generic pharmaceutical and medical devices is O Beer B 15 9 9 A 5 3 2 3 14 14 0 70 70 2 100 3 35 64 0 1 1 1 100 Power C D 5 25 7 8 2 7 5 6 19 46 62 19 0 0 8 3 12 33 100 100 Retail E F 30 8 10 3 16 25 0 4 56 39 33 49 0 0 6 6 4 7 100 100 Hospitality G H 7 2 4 18 0 0 4 3 15 23 53 17 0 0 9 39 23 21 100 100 Computers 1 14 41 10 18 1 16 5 9 31 84 8 4 56 56 0 3 2 2 9 100 100 Newspapers K L 25 35 9 14 0 2 2 4 ad . 36 56 25 23 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 42 75 0 1 28 1 1 13 8 100 Pharmaceutic 0 P 1 13 5 11 2 3 10 2 2 11 35 3 23 0 10 85 26 1 6 100 100 100 31 5 15 6 0 12 18 52 9 4 8 21 32 9 4 66 34 100 13 7 0 11 17 0 9 9 3 29 71 100 0 5 7 7 19 50 3 12 83 17 100 5 1 8 13 4 7 0 7 24 76 100 17 0 20 38 36 0 15 89 11 100 12 4 12 28 18 " 8 4 2 4 8 15 14 " 1 .. 18 47 53 100 10 5 38 53 63 0 43 159 (59) 100 5 3 24 24 33 13 0 4 4 0 20 24 0 0 5 29 71 100 4 8 12 23 10 0 32 66 34 100 2 5 5 19 26 16 10 14 6 63 37 100 1 2 8 o 11 62 12 3 88 12 100 4 4 0 19 23 22 0 0 13 59 41 100 2 14 59 80 20 100 0 28 46 54 100 34 80 20 100 41 100 100 ASSETS (%) %) Cash & ST Investments Receivables Inventory Current Assets Other Current Assets-Total Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities-Other Current LiabilitiesTotal Long-Term Debt Deferred Taxes Liabilities Other Liabilities-Total Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R&D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Price/Eamings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio Quick Ratio ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT T. Total Debt/Total Assets (%) LT Debt/Shareholders' Equity (%) Interest Coverage DuPONT ANALYSIS Net Profit Margin (%) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 100 (39) 61 (32) 0 0 3 32 (4) 1 29 (6) (4) 19 100 (48) 52 (36) 0 0 0 0 16 0 (0) 16 (6) 0 0 10 100 100 100 100 (81) (74) (67) (63) 19 26 33 36 (1) (7) (19) (28) 0 (4) (12) 0 0 0 0 0 0 (0) (0) 0 18 14 2 8 (6) 0 (0) (1) ( 0 (0) (0) 8 15 1 7 (3) 0 (1) (3) (3) 0 0 0 2 15 1 4 100 100 (63) (26) 37 74 (12) (23) 0 0 (13) (4) 0 0 13 47 (2) (5) (3) 2 8 44 (3) (14) 0 0 5 30 100 (60) 40 (6) (3) 0 0 0 30 1 (0) 11 31 (8) 0 22 23 100 (69) 31 (12) (13) 0 0 6 100 (39) 61 45 0 4 0 12 100 100 (101) (70) (1) 30 0 (4) 0 0 5 (5) 0 (5) ! (5) 16 0 (1) (2) 3 (7) 18 1 (6) 0 0 (7) 11 100 (60) 40 (4) 0 (5) (12) 19 (2) 0 17 17 (7) 0 11 100 (23) 77 (26) (3) 0 (23) ) 25 (15) (12) (1) (1) (0) (3) 100 (24) 76 (33) (24) 0 0 19 (0) (4) 14 (2) 0 12 0 0 6 6 (2 0 4 0 4 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 1.15 19.2 59.8 6.4 0.3 197.5 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10.9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.490.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 62.8 5.9 13.0 2.2 8.5 25.3 2.4 17.6 5.8 0.6 4.6 9.3 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nmf 8.8 13.1 0.6 14.1 13.6 10.8 3.9 5.3 22.0 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 1.6 5.9 2.5 2.3 4.3 7.6 2.5 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 58.9 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 54.6 23.2 87.7 501.9 1.7 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 (14.8) 4.0 0.6 8.1 11.1 0.8 46.0 10.6 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) Question 8 O pts Pharmaceuticals Companies O and P manufacture and market pharmaceuticals. One firm is a diversified company that sells both human pharmaceuticals as well as health products for animals. This company's strategy is to stay ahead of the competition by investing in the discovery and development of new and innovative drugs. The other company focuses on generic pharmaceuticals and medical devices. Most of this company's growth has been inorganic - the growth strategy has been to engage in highly leveraged acquisitions, and it has participated in more than 100 during the past eight years. The goal of acquiring new businesses is to enhance the value of the proven drugs in the company's portfolio rather than gamble on discoveries of new drugs for the future. Hints: Again, look at Goodwill. - R&D results from researching new drugs, instead of acquiring their creators. Diversified pharmaceutical is O, Generic pharmaceutical and medical devices is P O Diversified pharmaceutical is P, Generic pharmaceutical and medical devices is O Beer B 15 9 9 A 5 3 2 3 14 14 0 70 70 2 100 3 35 64 0 1 1 1 100 Power C D 5 25 7 8 2 7 5 6 19 46 62 19 0 0 8 3 12 33 100 100 Retail E F 30 8 10 3 16 25 0 4 56 39 33 49 0 0 6 6 4 7 100 100 Hospitality G H 7 2 4 18 0 0 4 3 15 23 53 17 0 0 9 39 23 21 100 100 Computers 1 14 41 10 18 1 16 5 9 31 84 8 4 56 56 0 3 2 2 9 100 100 Newspapers K L 25 35 9 14 0 2 2 4 ad . 36 56 25 23 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 42 75 0 1 28 1 1 13 8 100 Pharmaceutic 0 P 1 13 5 11 2 3 10 2 2 11 35 3 23 0 10 85 26 1 6 100 100 100 31 5 15 6 0 12 18 52 9 4 8 21 32 9 4 66 34 100 13 7 0 11 17 0 9 9 3 29 71 100 0 5 7 7 19 50 3 12 83 17 100 5 1 8 13 4 7 0 7 24 76 100 17 0 20 38 36 0 15 89 11 100 12 4 12 28 18 " 8 4 2 4 8 15 14 " 1 .. 18 47 53 100 10 5 38 53 63 0 43 159 (59) 100 5 3 24 24 33 13 0 4 4 0 20 24 0 0 5 29 71 100 4 8 12 23 10 0 32 66 34 100 2 5 5 19 26 16 10 14 6 63 37 100 1 2 8 o 11 62 12 3 88 12 100 4 4 0 19 23 22 0 0 13 59 41 100 2 14 59 80 20 100 0 28 46 54 100 34 80 20 100 41 100 100 ASSETS (%) %) Cash & ST Investments Receivables Inventory Current Assets Other Current Assets-Total Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities-Other Current LiabilitiesTotal Long-Term Debt Deferred Taxes Liabilities Other Liabilities-Total Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R&D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Price/Eamings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio Quick Ratio ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT T. Total Debt/Total Assets (%) LT Debt/Shareholders' Equity (%) Interest Coverage DuPONT ANALYSIS Net Profit Margin (%) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 100 (39) 61 (32) 0 0 3 32 (4) 1 29 (6) (4) 19 100 (48) 52 (36) 0 0 0 0 16 0 (0) 16 (6) 0 0 10 100 100 100 100 (81) (74) (67) (63) 19 26 33 36 (1) (7) (19) (28) 0 (4) (12) 0 0 0 0 0 0 (0) (0) 0 18 14 2 8 (6) 0 (0) (1) ( 0 (0) (0) 8 15 1 7 (3) 0 (1) (3) (3) 0 0 0 2 15 1 4 100 100 (63) (26) 37 74 (12) (23) 0 0 (13) (4) 0 0 13 47 (2) (5) (3) 2 8 44 (3) (14) 0 0 5 30 100 (60) 40 (6) (3) 0 0 0 30 1 (0) 11 31 (8) 0 22 23 100 (69) 31 (12) (13) 0 0 6 100 (39) 61 45 0 4 0 12 100 100 (101) (70) (1) 30 0 (4) 0 0 5 (5) 0 (5) ! (5) 16 0 (1) (2) 3 (7) 18 1 (6) 0 0 (7) 11 100 (60) 40 (4) 0 (5) (12) 19 (2) 0 17 17 (7) 0 11 100 (23) 77 (26) (3) 0 (23) ) 25 (15) (12) (1) (1) (0) (3) 100 (24) 76 (33) (24) 0 0 19 (0) (4) 14 (2) 0 12 0 0 6 6 (2 0 4 0 4 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 1.15 19.2 59.8 6.4 0.3 197.5 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10.9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.490.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 62.8 5.9 13.0 2.2 8.5 25.3 2.4 17.6 5.8 0.6 4.6 9.3 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nmf 8.8 13.1 0.6 14.1 13.6 10.8 3.9 5.3 22.0 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 1.6 5.9 2.5 2.3 4.3 7.6 2.5 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 58.9 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 54.6 23.2 87.7 501.9 1.7 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 (14.8) 4.0 0.6 8.1 11.1 0.8 46.0 10.6 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0)